,canada ,rev5ue ,ag5cy ,,rc#daaj 7#jf-ab7 ,employee or ,self-,employ$8 ,9 ,"o ,volume ,pr9t ,pages #d-g ,brl ,pages ;i-;iv & #a-cc ,9dex ,brl ,page ,d y ne$ m 9=m,n8 """"""""""""""""" #a ,teletypewrit] us]s """"""""""""""" #b ,yr op9ion c.ts6 """""""""""""""""" #b ,9t]pretive >ticles """"""""""""""" #b ,c\rt deci.ns """"""""""""""""""""" #c ,legislative ref];es """""""""""""" #c ,legal mat]ial """""""""""""""""""" #d ,:at's new """""""""""""""""""""""" #e ,2f y />t """"""""""""""""""""""""""" #e ,:o %d use ? guide8 """"""""""""""" #e ,reque/+ a rul+ """"""""""""""""""" #g ,det]m9+ a "w]'s employ;t /atus """ #h ,det]m9e a "w]'s employ;t /atus 9 a prov9ce or t]ritory 7o!r ?an ,quebec7 """""""""""""""""""" #i ,/ep #a """""""""""""""""""""""" #aj ,/ep #b """""""""""""""""""""""" #aj ,factors y %d 3sid] """""""""""""" #ab ,3trol """"""""""""""""""""""""" #ab ,degree ( 3trol or autonomy "" #ab ,pay]'s "r 6ex]cise 3trol """" #ac ;i ,9dex ,9dicators t ! "w] is an employee """"""""""""""""""" #ac ,9dicators t ! "w] is a self-employ$ 9dividual """"" #ad ,tools & equip;t """"""""""""""" #ae ,9dicators t ! "w] is an employee """"""""""""""""""" #ag ,9dicators t ! "w] is a self-employ$ 9dividual """"" #ag ,subcontract+ "w or hir+ assi/ants """""""""""""""""""" #ah ,9dicators t ! "w] is an employee """"""""""""""""""" #ai ,9dicators t ! "w] is a self-employ$ 9dividual """"" #ai ,f9ancial risk """"""""""""""""" #ai ,9dicators t ! "w] is an employee """"""""""""""""""" #bj ,9dicators t ! "w] is a self- employ$ 9dividual """""""""""" #ba ,responsibil;y = 9ve/;t & manage;t """"""""""""""""""""" #bb ;ii ,9dex ,9dicators t ! "w] is an employee """"""""""""""""""" #bb ,9dicators t ! "w] is a self-employ$ 9dividual """"" #bb ,opportun;y = pr(it """""""""""" #bc ,9dicators t ! "w] is an employee """"""""""""""""""" #be ,9dicators t ! "w] is a self-employ$ 9dividual """"" #bf ,det]m9+ a "w]'s employ;t /atus 9 ! prov9ce ( ,quebec """""""""" #bf ,/ep #a """""""""""""""""""""""" #bf ,/ep #b """""""""""""""""""""""" #bg ,/ep #c """""""""""""""""""""""" #bh ,factors y %d 3sid] """""""""""""" #bh ,p]=m.e ( "w """"""""""""""""""" #bh ,remun],n """""""""""""""""""""" #bi ,rel,n%ip ( subord9,n """""""""" #bi ,degree ( 3trol or autonomy "" #cj ,pay]'s "r 6ex]cise 3trol """" #cj ,9dicators t ! "w] is an employee """"""""""""""""""" #ca ;iii ,9dex ,9dicators t ! "w] is a self-employ$ 9dividual """"" #cb ,special situ,ns """"""""""""""""""" #cc ;iv ,transcrib]'s note3 7,front cov]7 ,canada ,rev5ue ,ag5cy ,employee or ,self-,employ$8 ,,rc#daaj7,e7 ,rev4 #jf-ab ,transcrib]'s note3 7,9side cov]7 ,d y ne$ m 9=m,n8 ,if y ne$ m help af y r1d ? guide1 see _+www.cra.gc.ca_: or call #a-hjj-iei-eebe4 ,y c get =ms & public,ns f _+www.cra.gc.ca/forms_: or 0call+ #a-hjj-iei-bbba4 #a ,teletypewrit] us]s ,if y use a teletypewrit] 7,,tty71 y c call \r bil+ual 5quiry s]vice at .#a-hjj-ffe-jced4 ,yr op9ion c.ts6 ,if y h any -;ts or su7es;ns on ! 9=m,n 3ta9$ 9 ? guide1 we want 6he> f y4 ,s5d yr -;ts to3 ,taxpay] ,s]vices ,directorate ,canada ,rev5ue ,ag5cy #gej ,h]on ,road ,ottawa ,,on ,k#a;,a #j;,l#e ,9t]pretive >ticles ,6view >ticles t w help y "u/& ! require;ts (! ,canada ,p5.n ,plan &! ,employ;t ,9sur.e ,act1 visit _+www.cra.gc.ca/cppeiexplained_:4 #b ,c\rt deci.ns --,sagaz ,9du/ries ,canada ,9c4 v4 #fgaabb ,ont>io ,ltd4 #bjja ,,scc #ei 7#bghbj7 --,royal ,w9nipeg ,ballet v4 ,canada 7,m4,n4,r47 ,7#bjjf7' ,f4,c4,j4 no4 #cci 7;,a-#ddc-jd7 --,wolf v4 ,canada #bjjb ,,fca #if 7;,a-#efc-jj7 --,/&+ v4 ,canada 7,m4,n4,r471 ,7#aiib7' ,f4,c4,j4 no4 #hij 7;,a-#heg-ij7 --,wiebe ,door ,s]vices ,ltd4 v4 ,canada 7,m4,n4,r47 ,7#aihf7' #c ,f4,c4 #eec 7;,a-#eca-he7 --#ijda-fhfh ,qu@ebec ,9c4 v4 ,canada 7,m4,n4,r7 ,7#bjje7' ,a4,c4,f4 no4 #agbj 7;,a-#eei-jd7 ,legislative ref];es --,p>agraph #e7#a77a7 (! ,employ;t ,9sur.e ,act #c ,legislative ref];es --,p>agraph #f7#a77a7 (! ,canada ,p5.n ,plan --,sec;ns #bjhe 6#babi (! ,civil ,code ( ,qu@ebec ,legal mat]ial ,,>*ambault1 ,pi]re4 8,3tract ( ,employ;t3 ,:y ,wiebe ,door ,s]vices ,ltd4 ,does ,n ,apply 9 ,quebec & ,:at ,%d ,replace ,x40 ,! ,h>monis,n ( ,f$]al ,legisl,n ) ,quebec ,civil ,law & ,canadian ,bijuralism3 ,second ,collec;n ( ,/udies 9 ,tax ,law4 ,montr1l4 ,,apff4 #bjje4 ,transcrib]'s note3 7,! >1s \tl9$ 9 r$ >e 9dicat$ by 8,/>t \tl9e0 & 8,5d \tl9e0 at ! left m>g947 #d ,/>t \tl9e ,:at's new ,? public,n has be5 updat$ 69clude ! process 6use :5 det]m9+ a "w]'s employ;t /atus 9 ! prov9ce ( ,quebec4 ,5d \tl9e ,if y h a visual impair;t1 y c get \r public,ns 9 brl1 l>ge pr9t1 or etext 7;,,cd or diskette71 or on audio cassette or ,,mp#c4 ,= details1 visit \r ,web site at _+www.cra.gc.ca/alternate_: or call #a-hjj-iei-bbba4 --------------------------------------#c ,2f y />t ,:o %d use ? guide8 ,use ? guide if y >e a pay] or a "w]4 ,x w help y "u/& h[ 6det]m9e a "w]'s employ;t /atus4 #e ,:o %d use ? guide8 a#c ,x is important 6det]m9e :e!r a "w] is an .employee or a .self-employ$ .9dividual4 ,employ;t /atus directly a6ects a p]son's 5title;t 6,employ;t ,9sur.e 7;,,ei7 b5efits4 ,x c al h an impact on h[ a "w] is tr1t$ "u o!r legisl,ns s* z ! ,canada ,p5.n ,plan1 ! ,employ;t ,9sur.e ,act1 &! ,9come ,tax ,act4 ,! facts (! rel,n%ip z a :ole w det]m9e employ;t /atus4 ,if ! "w] is an .employee1 7employ]- employee rel,n%ip7 ! pay] is 3sid]$ an employ]4 ,employ]s >e responsi# = deduct+ ,canada ,p5.n ,plan 7,,cpp7 3tribu;ns1 ,employ;t ,9sur.e premiums1 & 9come tax f remun],n or o!r am.ts !y pay 6_! employees4 ,!y m/ remit ^! deduc;ns al;g ) _! %>e ( ,,cpp 3tribu;ns & ;,,ei premiums4 ,an employ] :o fails 6deduct ! requir$ ,,cpp 3tribu;ns & ;,,ei premiums m/ pay bo? ! employ]'s %>e &! employee's %>e ( any 3tribu;ns & premiums [+1 plus #f ,:o %d use ? guide8 b#c p5alties & 9t]e/4 ,= m 9=m,n1 see _+www.cra.gc.ca/payroll_:4 ,note ,non->m's l5g? rel,n%ip--,if an employee is n d1l+ at >m's l5g? )! employ] x is possi# t _! employ;t is n 9sura# "u ! ,employ;t ,9sur.e ,act4 ,= m 9=m,n1 r1d ! 9t]pret,n >ticle on ? subject at _+www.cra.gc.ca/cppeiexplained_:4 ,if ! "w] is a .self-employ$ .9dividual 7busi;s rel,n%ip71 he or %e is 3sid]$ 6h a busi;s4 ,= m 9=m,n1 see _+www.cra.gc.ca/business_:4 ,reque/+ a rul+ ,if a "w] or pay] is n sure (! "w]'s employ;t /atus1 ei "py c reque/ a rul+ 6h ! /atus det]m9$4 ,use ,=m ,,cpt#a1 ,reque/ =a ,rul+ z 6! ,/atus (a ,"w] "u ! ,canada ,p5.n ,plan &/or ! #g ,resque/+ a rul+ c#c ,employ;t ,9sur.e ,act4 ,y c get ? f \r ,web site at _+www.cra.gc.ca/forms_: or 0call+ #a-hjj-iei-bbba4 ,= 9=m,n ab rul+s1 see _+www.cra.gc.ca/cppei_: & click on 8,h[ ,,cpp/;,,ei ,rul+s "w04 ,note ,? guide .does .n .replace a =mal reque/ =a rul+4 ,det]m9+ a "w]'s employ;t /atus ,c]ta9 factors m/ 2 3sid]$ :5 det]m9+ if a "w] is an employee or a self- employ$ 9dividual4 ,^! factors di6] if ! 3tract is =m$ 9 ! prov9ce ( ,quebec or 9 ano!r prov9ce or t]ritory4 ,usu,y1 ! prov9ce or t]ritory ": ! 3tract 0 =m$ w det]m9e : set ( factors 6use4 #h ,det]m9+ employe;t /atus d#c ,note ,9 a writt5 3tract1 ! "pies may /ate t 9 ! ev5t (a 4agree;t respect+ ! 3t5ts (! 3tract1 x is 6be 9t]pret$ "u ! ,qu@ebec law 7,civil ,code71 ev5 ?\< ! 3tract 0 =m$ = example 9 ,ont>io 7,-mon ,law74 ,dep5d+ on ": ! 3tract is =m$1 un.s x is /at$ di6]5tly 9 ! writt5 3tract1 use ! set ( factors appropriate = yr situ,n4 ,det]m9e a "w]'s employ;t /atus 9 a prov9ce or t]ritory 7o!r ?an ,quebec7 ,:5 we exam9e :e!r or n a p]son is an employee or self-employ$ 9dividual1 ! key "q we ask is :e!r or n ! p]son is 5gag$ 6p]=m s]vices z a p]son 9 busi;s on 8 or h] [n a3.t1 or z an employee4 ,6d ?1 we exam9e ! total rel,n%ip 2t ! "w] &! pay]1 us+ a two-/ep approa*4 #i ,/ep #a e#c ,we ask ! "w] &! pay] :at _! 9t5t 0 :5 !y 5t]$ 96! "w+ >range;t4 ,did ! two "pies 9t5d 65t] 96a 3tract ( s]vice 7employ]-employee rel,n%ip7 or did !y 9t5d 65t] 96a 3tract = s]vices 7busi;s rel,n%ip78 ,we ne$ 6"k h[ !y def9$ _! "w+ rel,n%ip & :y !y def9$ x z s*4 ,"s"ts ! 9t5;n is cle>1 & bo? "pies >e 9 agree;t 7-mon 9t5t74 ,"s"ts ! 9t5t c 2 f.d 9 a writt5 agree;t4 ,"s"ts ! two "pies h a di6]5t "u/&+ z 6! /atus ( _! "w+ rel,n%ip1 9 : case "! is no -mon 9t5t4 ,"w]s & pay]s c set up _! a6airs z !y see fit2 h["e1 !y m/ 5sure t ! /atus !y h *os5 is reflect$ 9 ! actual t]ms & 3di;ns (! employ;t4 ,/ep #b ,we ask ! "w] &! pay] "qs t w help u "u/& ! "w+ rel,n%ip & all[ u #aj ,det]m9+ employe;t /atus f#c 6v]ify :e!r ! 9t5t (! "pies is reflect$ 9 ! facts4 --------------------------------------#d ,^! "qs relate to3 --! level ( 3trol ! pay] has ov] ! "w]2 --:e!r or n ! "w] provides ! tools & equip;t2 --:e!r ! "w] c subcontract ! "w or hire assi/ants2 --! degree ( f9ancial risk tak5 0! "w]2 --! degree ( responsibil;y = 9ve/;t & manage;t held 0! "w]2 --! "w]'s opportun;y = pr(it2 & --any o!r relevant factors1 s* z writt5 3tracts4 ,we look at ! answ]s sep>ately & !n tgr4 ,we 3sid] :e!r or n !y reflect ! /at$ 9t5;n4 ,:5 "! is no -mon 9t5t1 we decide if ! answ]s >e m 3si/5t )a .3tract .( .s]vice or )a .3tract .= .s]vices4 #aa ,factors y %d 3sid] a#d ,6help y "u/& ! process1 we expla9 ea* factor & %[ "s 9dicators t ! "w] may 2 an employee or a self-employ$ 9dividual4 ,3trol ,3trol is ! abil;y1 au?or;y1 or "r (a pay] 6ex]cise 3trol ov] a "w] 3c]n+ ! mann] 9 : ! "w is d"o & :at "w w 2 d"o4 ,degree ( 3trol or autonomy ,3sid] ! degree ( 3trol held 0! pay] or ! degree ( autonomy held 0! "w]4 ,! actual degree ( 3trol w v>y )! type ( "w &! skills (! "w]4 ,! det]m9,n (! degree ( 3trol c 2 di6icult :5 exam9+ ! employ;t ( profes.nals s* z 5g9e]s1 doctors1 & ,,it 3sultants--2c ( _! exp]tise & specializ$ tra9+1 !y may require ll or no specific direc;n 9 _! daily activities4 ,:5 exam9+ ! factor ( 3trol1 x is nec #ab ,factors y %d 3sid] b#d 6focus on bo? ! pay]'s 3trol ov] ! "w]'s daily activities1 &! pay]'s 9flu;e ov] ! "w]4 ,pay]'s "r 6ex]cise 3trol ,x is ! "r (! pay] 6ex]cise 3trol t is relevant1 .n :e!r ! pay] actu,y ex]cises ? "r4 ,x is ! 3trol (a pay] ov] a "w] t is relevant1 & .n ! 3trol (a pay] ov] ! 5d result (a product or s]vice t he or %e has pur*as$4 ,9dicators t ! "w] is an employee --,! rel,n%ip is "o ( subord9,n4 ,! pay] w (t5 direct1 scrut9ize1 & e6ectively 3trol _m ele;ts ( h[ ! "w is p]=m$4 --,! pay] 3trols ! "w] ) respect 6bo? ! results (! "w &! me?od us$ 6d ! "w4 #ac ,factors y %d 3sid] c#d --,! pay] det]m9es & 3trols ! me?od & am.t ( pay4 ,sal>y negoti,ns may / take place 9 an employ]-employee rel,n%ip4 --,! "w] requires p]mis.n 6"w = o!r pay]s :ile "w+ = ? pay]4 --,": ! s*$ule is irregul>1 prior;y on ! "w]'s "t is an 9dic,n ( 3trol ov] ! "w]4 --,! pay] det]m9es :at jobs ! "w] w d4 --,! "w] rcvs tra9+ or direc;n f ! pay] on h[ 6d ! "w4 ,! ov]all "w 5viron;t 2t ! "w] &! pay] is "o ( subord9,n4 --,! pay] *ooses 6li/5 6! "w]'s su7es;ns b has ! f9al ^w4 ,9dicators t ! "w] is a self- employ$ 9dividual --,a self-employ$ 9dividual usu,y "ws 9dep5d5tly )9 a def9$ frame"w4 #ad ,factors y %d 3sid] d#d --,! "w] does n h any"o ov]see+ !m4 --,! "w] is usu,y free 6"w :5 &= :om he or %e *ooses & may provide 8 or h] s]vices 6di6]5t pay]s at ! same "t4 --,! "w] c a3ept or refuse "w f ! pay]4 --,! "w+ rel,n%ip 2t ! pay] &! "w] does .n pres5t a degree ( 3t9u;y1 loyalty1 secur;y1 subord9,n1 or 9tegr,n1 all ( : >e g5],y associat$ ) an employ]-employee rel,n%ip4 ,tools & equip;t ,3sid] if ! "w] [ns & provides tools & equip;t 6a3ompli% ! "w4 ,3tractual 3trol (1 & responsibil;y =1 an asset 9 a r5tal or l1se situ,n is al 3sid]$ "u ? factor4 ,:at is relevant is ! signific.e (! 9ve/;t 9 ! tools & equip;t al;g )! co/ ( replace;t1 repair1 & 9sur.e4 ,a "w] :o has made a significant 9ve/;t is likely 6reta9 a "r ov] ! use ( ^! assets1 #ae ,factors y %d 3sid] e#d dim9i%+ ! pay]'s 3trol ov] h[ ! "w is p]=m$4 ,9 a4i;n1 a significant 9ve/;t 9 tools & equip;t &! ma9t5.e & replace;t co/s associat$ ) ^! assets may place ! "w] at ! risk (a loss4 ,note ,tools & equip;t c v>y widely 9 t]ms ( value & c 9clude "ey?+ f wr5*es & hamm]s1 6co/umes1 appli.es1 /e?oscopes1 musical 9/ru;ts1 -put]s1 & vehicles s* z trucks & tractors4 ,self-employ$ 9dividuals (t5 supply ! tools & equip;t requir$ 6-plete a 3tract4 ,z a result1 ! [n]%ip ( tools & equip;t 0a "w] is m -monly associat$ )a busi;s rel,n%ip4 ,h["e1 employees c al 2 requir$ 6provide _! [n tools4 ,! c\rts h ac"kl$g$ t a "w] 2+ requir$ 6provide 8 or h] tools (! trade does #af ,factors y %d 3sid] #e n1 0xf1 place t "w] 9 ! /atus (a self- employ$ 9dividual4 ,= example1 _m skill$ trades p s* z auto me*anics >e requir$ 6supply _! [n tools1 ev5 if !y >e full- "t employees4 ,9dicators t ! "w] is an employee --,! pay] supplies mo/ (! tools & equip;t requir$ 0! "w]4 ,9 a4i;n1 ! pay] is responsi# = repair1 ma9t5.e1 & 9sur.e co/s4 --,! "w] supplies ! tools & equip;t &! pay] reimburses ! "w] = _! use4 --,! pay] reta9s ! "r ( use ov] ! tools & equip;t provid$ 6! "w]4 ,9dicators t ! "w] is a self- employ$ 9dividual --,! "w] provides ! tools & equip;t requir$ =! "w4 ,9 a4i;n1 ! "w] is responsi# =! co/s ( repairs1 #ag ,factors y %d 3sid] a#e 9sur.e1 & ma9t5.e 6! tools & equip;t4 --,! "w] has significant 9ve/;t 9 ! tools & equip;t &! "w] reta9s ! "r ov] ! use ( ^! assets4 --,! "w] supplies 8 or h] [n "wspace1 is responsi# =! co/s 6ma9ta9 x1 & p]=ms sub/antial "w f t site4 ,subcontract+ "w or hir+ assi/ants ,3sid] if ! "w] c subcontract "w or hire assi/ants4 ,? factor c help det]m9e a "w]'s busi;s pres;e 2c subcontract+ "w or hir+ assi/ants c a6ect _! *.e ( pr(it & risk ( loss4 #ah ,9dicators t ! "w] is an b#e employee --,! "w] _c hire help]s or assi/ants4 --,! "w] does n h ! abil;y 6hire & s5d replace;ts4 ,! "w] m/ p]=m ! s]vices p]son,y4 ,9dicators t ! "w] is a self- employ$ 9dividual --,! "w] does n h 6p]=m ! s]vices p]son,y4 ,he or %e c hire ano!r "py 6ei -plete ! "w or help -plete ! "w1 & pays ! co/s = do+ s4 --,! pay] has no say 9 :om ! "w] hires4 ,f9ancial risk ,3sid] ! degree ( f9ancial risk tak5 0! "w]4 ,det]m9e if "! >e any fix$ ongo+ co/s 9curr$ 0! "w] or any exp5ses t >e n reimburs$4 #ai ,factors y %d 3sid] c#e ,usu,y1 employees w n h any f9ancial risk z _! exp5ses w 2 reimburs$1 & !y w n h fix$ ongo+ co/s4 ,h["e1 self-employ$ 9dividuals c h f9ancial risk & 9cur losses 2c !y usu,y pay fix$ mon?ly co/s :e!r or n "w is curr5tly 2+ p]=m$4 ,employees & self-employ$ 9dividuals may 2 reimburs$ = busi;s or travel exp5ses4 ,3sid] only ! exp5ses t >e .n reimburs$ 0! pay]4 ,9dicators t ! "w] is an employee --,! "w] is n usu,y responsi# = any op]at+ exp5ses4 --,g5],y1 ! "w+ rel,n%ip 2t ! "w] &! pay] is 3t9u\s4 --,! "w] is n f9anci,y lia# if he or %e does n fulfil ! oblig,ns (! 3tract4 #bj ,factors y %d 3sid] d#e --,! pay] det]m9es & 3trols ! me?od & am.t ( pay4 ,9dicators t ! "w] is a self- employ$ 9dividual --,! "w] hires help]s 6assi/ 9 ! "w4 ,! "w] pays ! hir$ help]s4 --,! "w] p]=ms a sub/antial am.t ( "w f _! [n "wspace & 9curs exp5ses relat+ 6! op],n ( t "wspace4 --,! "w] is hir$ =a specific job r ?an an ongo+ rel,n%ip4 --,! "w] is f9anci,y lia# if he or %e does n fulfill ! oblig,ns (! 3tract4 --,! "w] does n rcv any protec;n or b5efits f ! pay]4 --,! "w] adv]tises 8 or h] s]vices & actively m>kets hmf or h]f4 #ba ,responsibil;y = 9ve/;t & e#e manage;t ,3sid] ! degree ( responsibil;y = 9ve/;t & manage;t held 0! "w]4 ,is ! "w] requir$ 6make any 9ve/;t 9 ord] 6provide ! s]vices8 ,a significant 9ve/;t is evid;e t a busi;s rel,n%ip may exi/4 ,y %d al 3sid] if ! "w] is free 6make busi;s deci.ns t a6ect 8 or h] pr(it or loss4 ,9dicators t ! "w] is an employee --,! "w] has no capital 9ve/;t 9 ! busi;s4 --,! "w] does n h a busi;s pres;e4 ,9dicators t ! "w] is a self- employ$ 9dividual --,! "w] has capital 9ve/;t4 --,! "w] manages 8 or h] /aff4 #bb ,factors y %d 3sid] f#e --,! "w] hires & pays 9dividuals 6help p]=m ! "w4 --,! "w] has e/abli%$ a busi;s pres;e4 --------------------------------------#f ,opportun;y = pr(it ,3sid] :e!r ! "w] c r1lize a pr(it or 9cur a loss1 z ? 9dicates t a "w] 3trols ! busi;s aspects ( s]vices r5d]$ & t a busi;s rel,n%ip likely exi/s4 ,6h a *.e (a pr(it &a risk (a loss1 a "w] m/ h pot5tial proce$s & exp5ses1 & "o cd exce$ ! o!r4 ,employees norm,y d n h ! *.e (a pr(it & risk (a loss ev5 ?\< _! remun],n c v>y dep5d+ on ! t]ms ( _! employ;t 3tracts4 ,= example1 employees "w+ on a -mis.n or piece-rate basis1 or employees )a productiv;y bonus clause 9 _! 3tract c 9cr1se _! e>n+s bas$ on _! productiv;y4 ,? 9cr1se 9 9come is n norm,y view$ z a pr(it1 z x is n ! excess ( proce$s ov] exp5ses4 #bc ,factors y %d 3sid] a#f ,employees may h exp5ses directly relat$ 6_! employ;t1 s* z automobile exp5ses1 bo>d & lodg+ co/s4 ,norm,y1 exp5ses wd n place employees at risk ( 9curr+ a loss 2c x is unlikely t ! exp5ses wd 2 9 excess ( _! remun],n4 ,self-employ$ 9dividuals norm,y h ! *.e ( pr(it or risk ( loss1 2c !y h ! abil;y 6pursue & a3ept 3tracts z !y see fit4 ,!y c negotiate ! price 7or unilat],y set _! prices7 = _! s]vices & h ! "r 6(f] ^? s]vices 6m ?an "o pay]4 ,self-employ$ 9dividuals w norm,y 9cur exp5ses 6c>ry \ ! t]ms & 3di;ns ( _! 3tracts1 & 6manage ^? exp5ses 6maximize net e>n+s4 ,self-employ$ 9dividuals c 9cr1se _! proce$s &/or decr1se _! exp5ses 9 an ef=t 69cr1se pr(it4 ,? factor m/ 2 3sid]$ f ! "w]'s p]spective1 n ! pay]'s4 ,x is =! mo/ "p an assess;t (! degree 6: ! "w] c 3trol 8 or h] proce$s & exp5ses4 ,employees g5],y d n %>e 9 pr(its or su6] losses 9curr$ 0! busi;s4 #bd ,factors y %d 3sid] b#f ,! me?od ( pay;t may help 6det]m9e if ! "w] has ! opportun;y 6make a pr(it or 9cur a loss4 ,9 an employ]-employee rel,n%ip1 ! "w] is norm,y gu>ante$ a return =! "w d"o & is usu,y pd on an h\rly1 daily1 weekly1 or simil> basis4 ,h["e1 "s self-employ$ 9dividuals may 2 pd on an h\rly basis4 ,:5 a "w] is pd a flat rate =! "w p]=m$1 x g5],y 9dicates a busi;s rel,n%ip1 especi,y if ! "w] 9curs exp5ses 9 p]=m+ ! s]vices4 ,9dicators t ! "w] is an employee --,! "w] is n norm,y 9 a posi;n 6r1lize a busi;s pr(it or loss4 --,! "w] is 5titl$ 6b5efit plans : >e norm,y only (f]$ 6employees4 ,^! 9clude regi/]$ p5.n plans1 & gr\p a3id5t1 h1l?1 & d5tal 9sur.e plans4 #be ,9dicators t ! "w] is a c#f self-employ$ 9dividual --,! "w] c hire a sub/itute &! "w] pays ! sub/itute4 --,! "w] is -p5sat$ 0a flat fee & 9curs exp5ses 9 p]=m+ ! s]vices4 ,det]m9+ a "w]'s employ;t /atus 9 ! prov9ce ( ,quebec ,:5 we exam9e :e!r or n a p]son is an employee or self-employ$ 9dividual1 we exam9e ! rel,n%ip 2t ! "w] &! pay]1 us+ a ?ree-/ep approa*4 ,/ep #a ,we ask ! "w] &! pay] :at _! 9t5t 0 :5 !y 5t]$ 96! "w+ >range;t4 ,we ne$ 6"k h[ !y def9$ _! "w+ rel,n%ip & :y !y def9$ x z s*4 ,"s"ts ! 9t5;n is cle>1 & bo? "pies >e 9 agree;t 7-mon 9t5t74 ,"s"ts ! 9t5t c 2 f.d 9 a writt5 agree;t4 ,"s"ts ! #bf ,a "w]'s employ;t /atus d#f two "pies h a di6]5t "u/&+ z 6! /atus ( _! employ;t rel,n%ip1 9 : case "! is no -mon 9t5t4 ,"w]s & pay]s c set up _! a6airs z !y see fit2 h["e1 !y m/ 5sure t ! /atus !y h *os5 is reflect$ 9 ! actual t]ms & 3di;ns (! employ;t4 ,6det]m9e ! "pies' 9t5;ns1 we obta9 a copy (! 3tract1 or a te/imony 0! "pies & exam9e ! "pies' ac;ns4 ,bo? "pies' 9t5;ns =m "p (! 3text t we analyse4 ,/ep #b ,we look 6see if ! employ;t meets ! def9i;n 9 ! ,civil ,code ( ,qu@ebec (a 3tract ( employ;t1 or (a busi;s 3tract 73tract = s]vices7 03sid]+ ! foll[+ factors3 --p]=m.e ( "w2 --remun],n2 & --rel,n%ip ( subord9,n4 ,x is important 6ga!r ! facts & analyse ea* ( !m 9 lie ea* "pies' 9t5;ns ) _! actual "w+ rel,n%ip4 ,we 3firm t ! 3di;ns (! "w+ rel,n%ip meet ! /atus t ! "pies h *os5 & t !y >e 3si/5t )! def9i;ns (! ,civil ,code ( ,qu@ebec4 --------------------------------------#g ,factors y %d 3sid] ,exam9e ! rel,n%ip 2t ! "w] &! pay] 03sid]+ ! factors \tl9$ 9 ,/ep #b4 ,6help y "u/& ! process1 we expla9 ea* factor & %[ "s 9dicators 64play :e!r or n a rel,n%ip ( subord9,n exi/s4 ,p]=m.e ( "w ,:e!r or n "! is an employ]-employee rel,n%ip or a busi;s rel,n%ip1 ! "w] m/ #bh ,factors yr %d 3sid] a#g p]=m ! "w4 ,x c 2 "p-"t or full-"t =a specifi$ or 9det]m9ate p]iod4 ,remun],n ,remun],n m1ns all 3sid],ns & b5efits hav+ a m"ot>y value4 ,:e!r or n "! is an employ]-employee rel,n%ip or a busi;s rel,n%ip1 ! "w] w rcv remun],n 9 ex*ange = "w4 ,! remun],n c 2 calculat$ 0"t1 0! piece or ano!r mann]4 ,rel,n%ip ( subord9,n ,? factor helps 4t+ui% ! employ]- employee rel,n%ip f a busi;s rel,n%ip4 ,! rel,n%ip ( subord9,n is ! capac;y1 ! au?or;y or ! "r (a pay] 6ex]cise a 3trol ov] ! "w]'s activities &! mann] 9 : ! "w is d"o4 #bi ,degree ( 3trol or autonomy b#g ,3sid] ! degree ( 3trol held 0! pay] or ! degree ( autonomy held 0! "w]4 ,! actual degree ( 3trol w v>y )! type ( "w &! skills (! "w]4 ,! det]m9,n (! degree ( 3trol c 2 di6icult :5 exam9+ ! employ;t ( profes.nals s* z 5g9e]s1 doctors1 & ,,it 3sultants--2c ( _! exp]tise & specializ$ tra9+1 !y may require ll or no specific direc;n 9 _! daily activities4 ,:5 exam9+ ! factor ( 3trol1 x is nec 6focus on bo? ! pay]'s 3trol ov] ! "w]'s daily activities1 &! pay]'s 9flu;e ov] ! "w]4 ,pay]'s "r 6ex]cise 3trol ,x is ! "r (! pay] 6ex]cise 3trol t is relevant1 .n :e!r ! pay] actu,y ex]cises ? "r4 ,x is ! 3trol (a pay] ov] a "w] t is relevant1 & .n ! 3trol (a pay] ov] ! 5d result (a product or s]vice t he or %e has pur*as$4 #cj ,9dicators t ! "w] is an c#g employee --,! pay] directs & 3trols _m ele;ts ( h[ ! "w is p]=m$ 7s* z :at1 :o1 ":1 :5 & h[74 --,! pay] 3trols ! "w]'s abs;es1 s* z sick l1ve or vac,n l1ve4 --,! pay] 3trols ! "w] ) respect 6! results (! "w &! me?od us$ 6d ! "w4 --,! pay] cr1tes ! "w s*$ule & e/abli%es ! "w]'s rules ( 3duct4 --,! "w] m/ p]=m ! "w4 --,! "w] m/ remit activ;y reports 6! pay]4 --,! "w]'s activities >e res]v$ 6a s+le pay] 7exclusiv;y ( s]vices74 --,! pay] c impose 4cipl9>y ac;ns on a "w]4 --,! "w] rcvs tra9+ or direc;n f ! pay] on h[ 6p]=m ! "w4 --,! "w] a3epts 6be 9tegrat$ 9 ! pay]'s busi;s 6h ! latt] b5efit f 8 "w4 #ca ,factors yr %d 3sid] d#g --,! "pies h 9s]t$ a non-competi;n clause 9 _! writt5 3tract4 ,9dicators t ! "w] is a self- employ$ 9dividual --,! "w] is usu,y free 6"w :5 &= :om he *ooses & may provide 8 or h] s]vices 6di6]5t pay]s at ! same "t4 --,! "w] does n h 6p]=m ! s]vices p]son,y4 ,he or %e c hire ano!r "py 6ei -plete ! "w or help -plete ! "w4 --,! "w] c g5],y *oose ! "t &! mann] ! "w w 2 p]=m$4 --,! "w] does n ne$ 6be at ! pay]'s premises4 --,! "w] c a3ept or refuse "w f ! pay]4 --,! "w+ rel,n%ip 2t ! pay] &! "w] does .n pres5t a degree ( 3t9u;y1 loyalty1 secur;y1 subord9,n1 or 9tegr,n1 all ( : >e g5],y associat$ ) an employ]-employee rel,n%ip4 #cb ,special situ,ns e#g ,special rules 3c]n+ ,,cpp1 ;,,ei & 9come tax = "w]s 5gag$ 9 c]ta9 o3up,ns apply4 ,"h >e a few examples3 --b>b]s & hairdress]s2 --taxi driv]s & driv]s ( o!r pass5g]-c>ry+ vehicles2 --fi%]s2 --place;t & employ;t ag5cy "w]s2 --employees \tside ( ,canada4 ,= 9=m,n on ^! "w]s &! special rules t apply1 visit \r ,web site at _+www.cra.gc.ca/payroll_:4 #cc